(4 minutes read)
· South African automotive components exports increased to a record R54.5 billion in 2020 from R53.7 billion in 2019, despite the uncertainties cast by the pandemic and global slowdown of the automotive industry
· The differentiator was the record catalytic converter exports of R25.98 billion, mainly to Europe to help vehicles to comply with stricter emissions legislation implemented in the region in 2020
· Catalytic converter exports constituted 47.7% of total automotive component exports in 2020 from South Africa.
South African automotive components exports increased to a record R54.5 billion in 2020 from R53.7 billion in 2019, despite the uncertainties cast by the pandemic and global slowdown of the automotive industry. The differentiator was the record catalytic converter exports of R25.98 billion, mainly to Europe to help vehicles to comply with stricter emissions legislation implemented in the region in 2020.Catalytic converter exports constituted 47.7% of total automotive component exports in 2020 from South Africa.
It is expected that catalytic converters will still play an increasing role in the EU market because of the stiff penalties for exceeding the emission threshold. The complete ban of the conventional vehicles would come only by 2030. Till that time the export of catalytic converters would continue, according to the report.
Other automotive components, such as tires and batteries were on upend in 2020. However, most other automotive component categories declined year on year in 2020.
This data was given by the Automotive Industry Export Council (AIEC) of South Africa while releasing the Automotive Export Manual 2021. Equally significant was the record investment of R9.2 billion by the seven local original equipment manufacturers (OEMs). This has led to the multinational component suppliers investing R2.4 billion in 2020, which has helped local value addition. The other factor that helped export of auto components was the depreciation of rand.
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The EU’s target is to have 40% EV sales by 2030. By 2040 is only the region is aiming for all new vehicle sales in the EU to be EVs. Global vehicle production declined by a massive 15.8% to 77.62 million vehicles in 2020 from the 92.18 million units produced in 2019.
